Dhanlaxmi Bank shares up over 1 pc after profit rises twofold

Shares of Dhanlaxmi Bank on Friday lost some early gains and ended the session over 1 percent up, even as the lender reported nearly twofold rise in net profit for the September quarter. Shares of the private sector lender rose 1.15 percent to Rs 15.90 apiece on the BSE. The stock saw an intra-day rise of 4.96 percent at Rs 16.50

Similarly, on the National Stock Exchange (NSE), the scrip settled at Rs 15.90, up 1.27 percent. The stock was 5.09 percent up at Rs 16.50 during the day. Dhanlaxmi Bank on Thursday reported a nearly twofold rise in its net profit at Rs 22.07 crore for the second quarter ended September 30, as bad loan ratio came down.

The bank had posted a net profit of Rs 12.15 crore in the corresponding July-September quarter of the previous financial year. The lender made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter, while there was a de-provisioning of Rs 18.19 crore a year ago.

The asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 7.06 percent (Rs 476.08 crore) of the gross advances as on September 30, from 7.81 percent (Rs 488.74 crore) a year ago. The net NPAs were 1.65 percent (Rs 105.34 crore), down from 2.92 percent (Rs 173.54 crore).

Provision coverage ratio as on September 30 stood at 89.16 percent, the bank said.